Nio Rivals Xpeng, Li Auto Fall In Hong Kong After Minister's Comments, Alibaba Continues To Dip While Other Big Tech Firms Strike Gains

Shares of Alibaba Group Holding Limited BABA, Xpeng Inc. (NYSE: XPEV) and Li Auto Inc. (NASDAQ: LI) are trading lower in Hong Kong on Tuesday, while Tencent Holdings Limited TCEHY, Baidu Inc. BIDU and JD.Com Inc. JD are advancing.

What’s Moving: Chinese e-commerce giant Alibaba’s shares traded 0.6% lower at HKD 159.80 ($20.53) in Hong Kong, while electric vehicle maker Li Auto’s shares traded 3.6% lower at HKD 113.00 ($14.52) and peer Xpeng’s shares are 1.3% lower at HKD 147.90 ($19.01).

China Evergrande Group’s EGRNF shares are down 7.1% to HKD 3.13 ($0.40) after the heavily indebted property developer warned that a significant drop in property sales would continue in September, according to a report by Reuters.

Meanwhile, technology company Baidu’s shares are rising almost 1.1% to HKD 159.20 ($20.46) and e-commerce company JD.com’s shares are almost 0.8% higher at HKD 315.60 ($40.55). Tencent Holdings’ shares are rising almost 0.7% to HKD 481.20 ($61.83) in Hong Kong

See Also: How To Buy Alibaba (BABA) Stock

Hong Kong’s benchmark Hang Seng Index is down 0.4% at the time of writing. The index closed 1.5% lower on Monday.

Why Is It Moving? The Hang Seng Index failed to sustain initial gains on Tuesday and is drifting lower amid lingering worries about Beijing’s ongoing crackdown on the tech sector.

The Chinese government is also urging consolidation in the country’s saturated electric vehicle sector.

Shares of Chinese companies closed mixed in U.S. trading on Monday after the Dow Jones Industrial Average and the S&P 500 rebounded from a five-session losing streak, while the tech-heavy Nasdaq edged lower.

Alibaba’s shares closed almost 1.6% lower, while electric vehicle maker Nio Inc.’s NIO shares ended 1.1% higher.

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